Summit Financial Group, Inc (SMMF) has reported a 13.60 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $4.71 million, or $0.44 a share in the quarter, compared with $4.15 million, or $0.39 a share for the same period last year.
Revenue during the quarter grew 14.65 percent to $16.46 million from $14.35 million in the previous year period. Net interest income for the quarter rose 14.69 percent over the prior year period to $13.46 million. Non-interest income for the quarter rose 4.50 percent over the last year period to $3 million.
Net interest margin contracted 17 basis points to 3.34 percent in the quarter from 3.51 percent in the last year period. Efficiency ratio for the quarter deteriorated to 56.67 percent from 54.46 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
H. Charles Maddy, III, president and chief executive officer of Summit, commented, "I am very pleased to report that Summit achieved record quarterly earnings in the quarter just ended and record annual earnings in 2016. Further, I am particularly gratified by our revenue growth during 2016 which resulted principally from our continued robust lending activity and our recent acquisition of Highland County Bankshares. Our pending acquisition of First Century Bankshares has received all approvals and is expected to close in early Q2 2017. This acquisition combined with our recent Highland County purchase - that is already positively impacting our bottom line -- represent significant opportunities for us. The combination of Summit and these two financially strong institutions which have similar cultures and core values as ours should contribute significantly towards our goal of being a consistent, high-performing community banking institution and gives us optimism as we look forward to 2017 and beyond."
Liabilities outpace assets growth
Total assets stood at $1,758.65 million as on Dec. 31, 2016, up 17.84 percent compared with $1,492.43 million on Dec. 31, 2015. On the other hand, total liabilities stood at $1,603.29 million as on Dec. 31, 2016, up 18.88 percent from $1,348.68 million on Dec. 31, 2015.
Loans outpace deposit growth
Net loans stood at $1,307.86 million as on Dec. 31, 2016, up 21.17 percent compared with $1,079.33 million on Dec. 31, 2015. Deposits stood at $1,295.52 million as on Dec. 31, 2016, up 21.45 percent compared with $1,066.71 million on Dec. 31, 2015.
Investments stood at $266.54 million as on Dec. 31, 2016, down 5.07 percent or $14.25 million from year-ago. Shareholders equity stood at $155.36 million as on Dec. 31, 2016, up 8.08 percent or $11.62 million from year-ago.
Return on average assets moved down 5 basis points to 1.07 percent in the quarter from 1.12 percent in the last year period. At the same time, return on average equity increased 56 basis points to 12.22 percent in the quarter from 11.66 percent in the last year period.
Nonperforming assets moved down 5.44 percent or $2.25 million to $39.09 million on Dec. 31, 2016 from $41.34 million on Dec. 31, 2015. Meanwhile, nonperforming assets to total assets was 2.22 percent in the quarter, down from 2.77 percent in the last year period.
Tier-1 leverage ratio stood at 9.40 percent for the quarter, down from 10.70 percent for the previous year quarter. Book value per share was $14.47 for the quarter, up 7.34 percent or $0.99 compared to $13.48 for the same period last year.
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